Steel Dynamics Inc (NASDAQ:STLD) stock rose 1.17% (As on January 23, 11:26:48 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 24. The company reported fourth quarter 2024 net sales of $3.9 billion and net income of $207 million. Comparatively, the company’s sequential third quarter 2024 net income was $318 million, and prior year fourth quarter net income was $424 million. Fourth quarter 2024 operating income for the company’s steel operations was $165 million, representing a 46 percent sequential decline, based on seasonally lower steel shipments and metal spread compression, as average realized steel selling values declined. The company also experienced an unplanned outage at its Butler Flat Roll Division further reducing quarterly volume by an estimated 50,000 tons. The fourth quarter 2024 average external product selling price for the company’s steel operations decreased $48 per ton sequentially to $1,011 per ton. The average ferrous scrap cost per ton melted at the company’s steel mills increased to $370 per ton, or $3 per ton. Additionally, the company’s Sinton Texas Flat Roll Steel Division operated at levels in excess of 80 percent during November and December, while also improving product quality and cost efficiency.
Moreover, Fourth quarter 2024 operating income from the company’s metals recycling operations was $23 million, representing a $13 million increase compared to sequential third quarter results, as metal spread improvement and continued cost efficiencies more than offset lower seasonal shipments. The company’s steel fabrication operations achieved strong operating income of $142 million in the fourth quarter 2024, below sequential third quarter results, based on seasonally lower shipments and slight metal spread compression, as realized selling values declined modestly. The company believes that the continued onshoring of manufacturing, coupled with the robust U.S. infrastructure and Inflation Reduction Act programs will drive industrial construction activity, and provide an environment for strong steel joist and deck demand, as well as flat rolled and long product steel demand.
STLD in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.36, beating the analysts’ estimates for the adjusted earnings per share of $1.29, according to Zacks Investment Research. The company had reported the adjusted revenue of $3.87 billion in the fourth quarter of FY 24, missing the analysts’ estimates for revenue of $3.96 billion.
Declining steel imports, coupled with steady to increasing North American steel demand, provides a positive commercial environment for 2025. STLD have experienced strong order activity for flat rolled steel so far in 2025, and prices have stabilized with continued positive customer outlook.